fourth quarter 2011

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  • Q4 & Year End 2011 Lake Shore Gold Conference Call March 27, 2012TSX, NYSE Amex: LSG

    Lake Shore Gold

  • Certain statements in this presentation relating to the Company's expected production levels, production growth, exploration activities,potential for increasing resources project expenditures and business plans are "forward looking statements" or "forward looking

    Forward Looking Statements potential for increasing resources, project expenditures and business plans are forward-looking statements or forward-lookinginformation" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under theUnited States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does notintend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements representmanagement's best judgment based on current facts and assumptions that management considers reasonable, including that operating andcapital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportationor utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete, , p g , pprojects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identifiedmineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reachthe same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to be materially different from any future results, performance or achievementsexpressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or incurrency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-lookingt t t M i f ti b t i k d t i ti ff ti th C d it b i i il bl i th C ' t tstatements. More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent

    Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com,or the Companys most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.

    QUALITY CONTROLLake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Controlsamples consisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and thecertified standards are checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have beencompleted using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold onexploration projects and greater than 10 gpt at the Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fireassayed with a gravimetric finish. Select zones with visible gold are typically tested by pulp metallic analysis on some projects. NQ size drill coreis saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core istransported in security-sealed bags for preparation at ALS Chemex Prep Lab located in Timmins, Ontario, and the pulps shipped to ALS ChemexAssay Laboratory in Vancouver B C ALS Chemex is an ISO 9001 2000 registered laboratory preparing for ISO 17025 certificationAssay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.

    QUALIFIED PERSONThe Companys Qualified Persons (QPs) (as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects) for diamonddrilling projects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardioptioned property are Jacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for theTimmins deposit and Thunder Creek underground drilling projects, and Bob Kusins, P.Geo., is the QP for resource estimation at all of theCompanys properties. As QPs, Messrs. Samson, Conquer, Green, Crick and Kusins have prepared or supervised the preparation of thescientific or technical information for their respective properties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick andGreen are employees of the Company.

    2

  • LSG: Good Progress in 2011

    Doubled production to 86,565 ounces poured

    Finished year strong with >26 000 ozs poured inFinished year strong with >26,000 ozs poured in Q4/11

    D bl d f d tiDoubled resources for second consecutive yearo Initial resources for Thunder Creek, Fenn-Gib,

    V l d M lhillVogel and Marlhill

    Commenced 50% mill expansion remains on track

    Continued to achieve significant exploration success

    3 *Examples of Forward Looking Statements.

  • W k l f d i i i d illi it

    LSG: Turning to 2012* Work plan focused on ramping up mining and milling capacity to 3,000 tonnes per day by late 2012

    Work at Timmins West Mine and Bell Creek in first half 2012Work at Timmins West Mine and Bell Creek in first half 2012 focused on development, ore delineation, stope preparation

    Mill expansion advancing towards completion by late 2012Mill expansion advancing towards completion by late 2012

    2012 guidance: 85,000 to 100,000 ounces, weighted to second half of year

    Strong growth in 2013

    Cash costs in 2012 targeted at US$825 to US$875 per ounceg $ $ p

    First Quarter 2012: expected production of approx. 15,000 ounces, cash costs US$1,450 per oz, to improve as

    4 *Examples of Forward Looking Statements.

    production ramps up

  • LSG: Turning to 2012* Capital expenditures - $93M Timmins West Mine, $67M mill expansion and other mill improvements

    E dit t B ll C k l ti t b dExpenditures at Bell Creek, exploration to be assessed as year progresses

    Company funded to develop and bring Timmins West Mine toCompany funded to develop and bring Timmins West Mine to 3,000 tpd (including both mining and milling)

    Assessing opportunities to strengthen balance sheet to g pp gsupport other expenditures

    5 *Examples of Forward Looking Statements.

  • LSG: First Quarter 2012 Highlights

    Updated resource for Timmins West Mine Indicated: 1,122,500 ozs (5,826,000 tonnes @ 5.99 gpt)Inferred: 791,500 ozs (4,272,000 tonnes @ 5.76 gpt)

    Updated resource for Gold River TrendUpdated resource for Gold River TrendTotal ounces nearly tripled and grade doubledIndicated: 117,400 ozs (690,000 tonnes @ 5.29 gpt)( @ gp )Inferred: 1,027,800 ozs (5,273,000 tonnes @ 6.06 gpt)

    Timmins West Mine PEATimmins West Mine PEA Demonstrates potential for substantial cash flows, attractive returns and favourable economics

    6 *Examples of Forward Looking Statements.

  • LSG: 2011 Operating Highlights

    Q4/11 2011G ld d 26 550 86 565Gold poured 26,550 86,565

    Total tonnes 186,231 671,467

    Average grade 4 03 4 34Average grade 4.03 4.34

    Total Production 24,809 82,585

    Cash Costs* ($/t) (Timmins Deposit) 102 95

    *Denotes a non-GAAP measure

    Cash Costs ($/t) (Timmins Deposit) 102 95

    Cash Costs* (US$/oz) (Timmins Deposit) 762 811Denotes a non-GAAP measure.

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  • LSG: 2011 Financial Highlights Q4/11 2011Q4/11 2011

    Gold sold (oz) 21,956 91,468Average price (US$/oz) 1 687 1 546Average price (US$/oz) 1,687 1,546Proceeds from gold sales ($M) 37.8 140.2Proceeds from commercial gold sales ($M) 14.8 66.2Cash earnings from operations*

    $ millions 8.1 31.7Net lossNet loss

    $ million$ per share

    5.50.01

    10.90.03

    *Denotes a non-GAAP measure.

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  • LSG: 2011 Expenditures

    2011Projects 96.7

    Exploration 32.1

    Mill Expansion 22.6

    Total 151.4

    Increased project spending mainly relates to additional development work at Thunder Creek and cost escalation

    Ended year with $66.2M cash and gold bullion inventory

    Franco-Nevada royalty/equity investment added $50 million in February 2012

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    in February 2012

  • Timmins Deposit Timmins Deposit Thunder Creek Thunder Creek

    200 Level200 Level

    Timmins West MineTimmins West Mine

    Timmins and 200 Level200 Level

    300 Level300 Level

    Timmins and Thunder Creek deposits combined

    Initial ThunderInitial Thunder Creek resource released Nov. 2011

    Updated Timmins

    650 Level650 Level

    730 Level730 Level2012 Work 2012 Work 2012 Work2012 Work

    Updated Timmins deposit resource February 2012

    PEA first evaluation 730 Level730 LevelProgram*Program*

    2012 Work 2012 Work Program*Program*of fully integrated

    operation

    Conceptual view - full development

    *Examples of Forward Looking Statements.

    of current resources

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  • Timmins Deposit Setting Ourselves Up

    545L

    565Lg pFor Rapid Growth

    585L

    610L

    In 2012:Ore delineation and 610L

    Shaft650L

    Ore delineation and infrastructure focus during early part of yearProduction weighted to

    670L

    690L

    Production

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